Thinking about buying a home in Roseburg? There are a lot of “warm and fuzzy” reasons you might want to buy a home. You know, reasons like having a place to raise the kids, owning your own tire swing, and freedom to redecorate as you want.
Fact is, the reasons are different for each buyer, and each situation, but what about the financial benefits of buying a home?
In this post I’m going to talk about the 5 reasons buying a home in Roseburg makes good financial sense.
5 Financial Reasons To Buying A Home In Roseburg OR
Truth is, there are many financial benefits to owning a home. I just happened to think of these 5 as I was stopped in road construction traffic on Stephens here in Roseburg Oregon this afternoon.
From my 20-something years in real estate, I can tell you, more often than not, it’s better to own than rent. So let’s get into it…
1) You’re Already Paying A Mortgage.
Regardless whether you’re renting or buying. If you’re currently a renter, you’re paying off your landlord’s property for him/her.
Doesn’t it just make sense to pay down your own mortgage rather than your landlord’s?
2) It’s A Forced Retirement Savings Account.
If you’re like 61% of American adults, you’re living paycheck-to-paycheck. That means a majority of the American public is roughly one paycheck away from bankruptcy.
Forget about having extra income to put away for retirement. That’s why I say buying a home in Roseburg could be a great financial decision for your future.
If you pay on your own mortgage for the next 15, 25, or 30 years, and pay it off, it’s yours. Chances are, it’ll be worth much more than you originally paid for it, and this gives you freedom.
The renter will go on paying rent month after month, but when your own home is free and clear, you have all kinds of options.
3) You Can Leverage This Investment With Little Money
Real estate remains one of the only investments you can make with very little, or sometimes no out of pocket money. Here’s what I mean…
You can buy a $200,000 home on an FHA loan with 3.5% down. Bottom line, you’re paying $7,000 down to get the use, appreciation, and future benefit of a $200,000 home. The down payment might even be lower if you qualify for VA or other first time home buyer programs.
You would never be able to leverage $200,000 worth of stocks in a company for a mere $7,000 down payment, making real estate an excellent investment vehicle.
Want to know more about real estate investments? Contact me here.
4) Buying A Home Can Provide A Hedge Against Inflation
If you have been renting for more than a year or two, there’s a good chance your rent has increased at least once. I personally own rentals, and it’s a pretty common thing to bump rents every year or two to keep up with inflation.
The question you need to ask yourself is, how many more times will your rent go up over the next 20-30 years? How much will your house or apartment cost you in 10, 20, or 30 years, and will your income go up enough to maintain the same lifestyle you currently have?
That’s how the mortgage on your home can provide protection for you. If you were to buy a home today, and your rate is 4%, your payment will not change for the life of the loan!
So, if you’re monthly house payment is $1,000 today, guess what? It’ll be $1,000 in 30 years when you make your last payment!
Do you see how your mortgage can provide a hedge against inflating cost of living?
5) Tax Benefits Of Owning A Home
Do you like paying taxes? Who does right? If you want to trim down the amount you pay Uncle Sam each year, you should think buying a home.
Unless your mortgage is over $1 million, the government allows you to deduct the interest you pay on your mortgage. This can really impact those “paycheck-to-paycheck” people who could use a little extra at tax time.
The reason this is such a biggie, is for the first 15-20 years of your mortgage, a majority of your monthly payment will go towards interest.
You will need to file a form 1040 at tax time, so it’s best to consult a tax professional for help. The mortgage interest deduction is only one 4 tax benefit of owning a home, which you can read about in another post:
In my opinion, buying a home in Roseburg just makes good financial sense. The benefits just far outweigh the detriments… and probably always will.
Unless something huge happens, and we lose these benefits (which probably won’t happen), buying a home can be one of the best decisions you can make for your future, and for your family.